Family Feud Forces Auction in Village

By

Josh Barbanel

Updated Oct. 6, 2010 12:01 a.m. ET

Behind the stone lintel and bay window of a 19th-century townhouse just off Fifth Avenue in the heart of Greenwich Village, a bitter dispute between two middle-aged brothers has forced the rush sale of the property at auction in a matter of weeks.

ENLARGE

One of the apartments inside of 3 E. 10th Street.
Ramsay de Give for The Wall Street Journal

The wide Romanesque townhouse at 3 East 10th St., a few blocks away from the Washington Square Arch, was recently listed for nearly $10 million.

But the townhouse, now divided into small apartments, failed to sell and was scheduled for auction after one of the brothers, Willard Baldwin III, 56 years old, who lives in the building, changed his mind and decided not leave the property that had been in the family for a generation.

Mr. Baldwin blocked a broker with Halstead Property from showing the building, tore down a for-sale sign, and advised several tenants who had been negotiating buyouts to stay put, according to court papers. Mr. Baldwin didn't respond to requests for comment.

Now, the 25-foot wide townhouse, partitioned into medical offices and apartments, is due to be auctioned off on Oct. 21 by Misha Haghani of Paramount Realty USA, with a minimum bid of $3.5 million.

"It is a New York tragedy," said Christopher G. Conway, a lawyer who negotiated a settlement on behalf of Willard Baldwin during the spring, "that such a great building in such a great location that had 120 years of history" had to be disposed of at auction.

But Mr. Conway added "the real tragedy" was that "the brothers didn't have the relation that their father wanted them to have" and the family "has been torn apart for no better reason than money."

The rush auction was scheduled after a recent court order gave Mr. Baldwin's younger brother, Ned, a 52-year-old building inspector in Stockbridge, Mass., control of the property last week, and barred Willard Baldwin from interfering.

ENLARGE

The exterior of the Baldwins' townhouse at 3 E. 10th St.
Ramsay de Give for The Wall Street Journal

Ned Baldwin said in an interview that he, too, had emotional ties to the building, but he found that after a series of unresolved disputes that he could no longer work with his brother "as a business partner anymore."

"If I had my way I would keep the building until I die and give it to my daughter," he said.

The brick-and-stone townhouse was built, along with a twin building next door, in 1890, and was purchased by the father of the Baldwin brothers, Willard Baldwin II, an investor in real estate in the Village, in 1968, according to property records. In the 1990s, he gave each son a 50% interest in the building.

In a dispute going back several years, the brothers couldn't agree on how to manage the building. As a result of their stalemate, two apartments that could have been combined and rented for $5,000 a month remained vacant for three years, court papers said.

Last November, Ned Baldwin went to court to force a sale of the townhouse, with the proceeds to be shared by the two brothers.

Willard Baldwin eventually hired Mr. Conway to represent him and in May. he signed an agreement to sell the house. In June the property was listed with Barbara Godson and Charles Homet of Halstead Property at $9.95 million, a price that was predicated on the building being delivered without tenants.

When it became clear that the tenants weren't willing to leave, the brokers recommended cutting the asking price to $8 million, but Willard Baldwin refused to agree to the cut in asking price, court records show. Ms. Godson declined to comment on the listing.

The auction deadline was set in the original agreement between the brothers. The timing was intended to make it easier for the brothers to close on the sale before the end of the year, after which capital-gains tax rates are due to rise, unless there is action by Congress, lawyers said.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.